Trading liabilities (Tables)

12 Months Ended

Dec. 31, 2022

Financial Instruments [Abstract]

Disclosure of trading liabilities

	2022	2021
	$m	$m
Deposits by banks1	9,332	4,243
Customer accounts1	10,724	9,424
Other debt securities in issue (Note 26)	978	1,792
Other liabilities – net short positions in securities	51,319	69,445
At 31 Dec	72,353	84,904

1‘Deposits by banks’ and ‘Customer accounts’ include fair value repos, stock lending and other amounts.

HSBC
	2022	2021
	$m	$m
Deposits by banks and customer accounts1	19,171	16,703
Liabilities to customers under investment contracts	5,380	5,938
Debt securities in issue (Note 26)	93,140	112,761
Subordinated liabilities (Note 29)	9,636	10,100
At 31 Dec	127,327	145,502

1    Structured deposits placed at HSBC Bank USA are insured by the Federal Deposit Insurance Corporation, a US government agency, up to $250,000 per depositor.

HSBC Holdings
	2022	2021
	$m	$m
Debt securities in issue (Note 26)	25,423	26,818
Subordinated liabilities (Note 29)	6,700	5,600
At 31 Dec	32,123	32,418

HSBC’s subordinated liabilities
	2022	2021
	$m	$m
At amortised cost	22,290	20,487
– subordinated liabilities	20,547	18,640
– preferred securities	1,743	1,847
Designated at fair value (Note 25)	9,636	10,100
– subordinated liabilities	9,636	10,100
– preferred securities	—	—
At 31 Dec	31,926	30,587
Issued by HSBC subsidiaries	6,094	9,112
Issued by HSBC Holdings	25,832	21,475

HSBC’s subsidiaries subordinated liabilities in issue
				2022	2021
		First call date	Maturity date	$m	$m
Additional tier 1 capital securities guaranteed by HSBC Holdings1,2
$900m	10.176% non-cumulative step-up perpetual preferred securities, series 23	Jun 2030		900	900
				900	900
Additional tier 1 capital securities guaranteed by HSBC Bank plc1,2
£700m	5.844% non-cumulative step-up perpetual preferred securities4,5	Nov 2031		684	947
				684	947
Tier 2 securities issued by HSBC Bank plc
$750m	Undated floating rate primary capital notes	Jun 1990		750	750
$500m	Undated floating rate primary capital notes	Sep 1990		500	500
$300m	Undated floating rate primary capital notes, series 3	Jun 1992		300	300
$300m	7.65% subordinated notes6	—	May 2025	170	300
				1,720	1,850
£300m	6.50% subordinated notes7	—	Jul 2023	162	406
£350m	5.375% callable subordinated step-up notes2,7,8	Nov 2025	Nov 2030	73	539
£500m	5.375% subordinated notes7	—	Aug 2033	186	900
£225m	6.25% subordinated notes7	—	Jan 2041	56	303
£600m	4.75% subordinated notes7	—	Mar 2046	230	805
				707	2,953
				2,427	4,803
Tier 2 securities issued by The Hongkong and Shanghai Banking Corporation Limited
$400m	Primary capital undated floating rate notes (third series)	Jul 1991		400	400
				400	400
Tier 2 securities issued by HSBC Bank Malaysia Berhad
MYR500m	5.05% subordinated bonds2,9	Nov 2022	Nov 2027	—	120
				—	120
Tier 2 securities issued by HSBC USA Inc.
$250m	7.20% subordinated debentures2	—	Jul 2097	223	222
				223	222
Tier 2 securities issued by HSBC Bank USA, N.A.
$1,000m	5.875% subordinated notes10	—	Nov 2034	339	456
$750m	5.625% subordinated notes10	—	Aug 2035	366	489
$700m	7.00% subordinated notes	—	Jan 2039	700	697
				1,405	1,642
Tier 2 securities issued by HSBC Bank Canada
	Other subordinated liabilities each less than $150m2,11	Oct 1996	Nov 2083	—	9
				—	9
Securities issued by other HSBC subsidiaries
Other subordinated liabilities each less than $200m12				55	69
Subordinated liabilities issued by HSBC subsidiaries at 31 Dec				6,094	9,112

1See paragraph below, ‘Guaranteed by HSBC Holdings or HSBC Bank plc’.

2These securities are ineligible for inclusion in the capital base of HSBC.

3The interest rate payable after June 2030 is the sum of the three-month Libor plus 4.98%.

4    The interest rate payable after November 2031 is the sum of the compounded daily Sonia rate plus 2.0366%.

5    The value of the security partially decreased as a result of a fair value hedge gain. The instrument was held at amortised cost in 2021.

6    HSBC Bank plc tendered for this security in November 2022. The principal balance is $180m. The original notional value of the security was $300m.

7    HSBC Bank plc tendered for these securities in November 2022. The principal balances are £135m, £61m, £157m, £70m and £237m, respectively. The original notional values of these securities were £300m, £350m, £500m, £225m and £600m respectively.

8    These securities qualified as tier 2 capital for HSBC under CRR II until 31 December 2021 by virtue of the application of grandfathering provisions. The interest rate payable after November 2025 is the sum of the compounded daily Sonia rate plus 1.6193%.

9    These securities were fully repaid in November 2022.

10 HSBC tendered for these securities in November 2019. The principal balances are $357m and $383m respectively. The original notional values of these securities were $1,000m and $750m, respectively.

11 Liability accounts for HSBC Bank Canada have been reclassified to ‘Liabilities of disposal groups held for sale’.

12 These securities are included in the capital base of HSBC, in accordance with the grandfathering provisions under CRR II. In 2022, securities of $11m matured and were redeemed.

HSBC Holdings’ subordinated liabilities
	2022	2021
	$m	$m
At amortised cost	19,727	17,059
Designated at fair value (Note 25)	6,700	5,600
At 31 Dec	26,427	22,659

HSBC Holdings’ subordinated liabilities in issue
		First call	Maturity	2022	2021
		date	date	$m	$m
Tier 2 securities issued by HSBC Holdings
Amounts owed to third parties
$2,000m	4.25% subordinated notes2,3	—	Mar 2024	1,941	2,072
$1,500m	4.25% subordinated notes2	—	Aug 2025	1,450	1,615
$1,500m	4.375% subordinated notes2	—	Nov 2026	1,450	1,641
$264m	7.625% subordinated notes1,4	—	May 2032	308	536
$223m	7.625% subordinated notes2,6	—	May 2032	223	—
$125m	7.35% subordinated notes1,4	—	Nov 2032	143	241
$97m	7.35% subordinated notes2,6	—	Nov 2032	97	—
$1,431m	6.50% subordinated notes1,5	—	May 2036	1,461	2,032
$569m	6.50%subordinated notes2,6	—	May 2036	568	—
$1,515m	6.50% subordinated notes1,5	—	Sep 2037	1,178	2,825
$985m	6.50% subordinated notes2,6	—	Sep 2037	977	—
$961m	6.80% subordinated notes1,5	—	Jun 2038	953	1,491
$539m	6.80% subordinated notes2,6	—	Jun 2038	540	—
$1,500m	5.25% subordinated notes2	—	Mar 2044	1,447	1,946
$2,000m	4.762% subordinated notes2	Mar 2032	Mar 2033	1,766	—
$2,000m	8.113% subordinated notes2	Nov 2032	Nov 2033	2,008	—
£650m	5.75% subordinated notes2	—	Dec 2027	775	1,040
£650m	6.75% subordinated notes2	—	Sep 2028	816	877
£750m	7.00% subordinated notes2	—	Apr 2038	817	1,082
£900m	6.00% subordinated notes2	—	Mar 2040	776	1,320
£1,000m	8.201% subordinated notes2	Aug 2029	Nov 2034	1,252	—
€1,500m	3.0% subordinated notes2	—	Jun 2025	1,492	1,737
€1,000m	3.125% subordinated notes2	—	Jun 2028	991	1,304
€1,250m	6.364% subordinated notes2	Nov 2027	Nov 2032	1,316	—
SGD900m	5.25%subordinated notes2	Jun 2027	Jun 2032	694	—
JPY11,900m	2.50% subordinated notes2	Sep 2027	Sep 2032	88	—
				25,527	21,759
Amounts owed to HSBC undertakings
$900m	10.176% subordinated step-up cumulative notes	Jun 2030	Jun 2040	900	900
				900	900
At 31 Dec				26,427	22,659

1Amounts owed to third parties represent securities included in the capital base of HSBC as tier 2 securities in accordance with the grandfathering provisions under CRR II.

2These securities are included in the capital base of HSBC as fully CRR II-compliant tier 2 securities on an end point basis.

3    These subordinated notes are measured at amortised cost in HSBC Holdings, where the interest rate risk is hedged using a fair value hedge, while they are measured at fair value in the Group.

4    These securities were subjected to a tender and an exchange offer exercise in September 2022. The original principal amounts were $488m and $222m, respectively, and are now $264m and $125m.

5 These securities were subjected to an exchange offer exercise in September 2022. The original principal amounts were $2,000m, $2,500m and $1,500m, respectively, and are now $1,431m, $1,515m and $961m.

6    These subordinated notes were issued under an exchange offer exercise in September 2022.